Arbeitspapier
Low-Wage Import Competition, Inflationary Pressure, and Industry Dynamics in Europe
What is the impact of import competition from low-wage countries (LWCs) on inflationary pressure in Europe? This paper examines whether labor-intensive exports from emerging Europe, Asia, and other global regions have a uniform impact on producer prices in Germany, France, Italy, Sweden, and the United Kingdom. In a panel covering 110 (4-digit) NACE industries from 1995 to 2008, instrumental variable estimations predict that LWC import competition is associated with strong price effects. More specifically, when LWC exporters capture 1% of European market share, producer prices decrease by about 3%. In contrast, no effect is present for import competition from low-wage countries in Central and Eastern Europe. Decomposing the mechanisms that underlie the LWC price effect on European industry, we show that import competition has a pronounced effect on average productivity with only a muted effect on wages or margins. Owing to the exit of firms and the increase in productivity, LWC import competition is shown to have substantially reduced employment in the European manufacturing sector.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Paper ; No. 11.02
- Klassifikation
-
Wirtschaft
Neoclassical Models of Trade
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Empirical Studies of Trade
Trade and Labor Market Interactions
Macroeconomic Aspects of International Trade and Finance: General
- Thema
-
intra-industry trade
comparative advantage
globalization
Intraindustrieller Handel
Komparativer Vorteil
Globalisierung
Standortwettbewerb
Europa
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Auer, Raphael
Degen, Kathrin
Fischer, Andreas M.
- Ereignis
-
Veröffentlichung
- (wer)
-
Swiss National Bank, Study Center Gerzensee
- (wo)
-
Gerzensee
- (wann)
-
2011
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Auer, Raphael
- Degen, Kathrin
- Fischer, Andreas M.
- Swiss National Bank, Study Center Gerzensee
Entstanden
- 2011
Ähnliche Objekte (12)
Low-wage competition: Pains from trade for medium-wage countries
Low-wage employment
Low-wage employment
Firm Innovation under Import Competition from Low-Wage Countries
Monopsonistic Competition, Low-Wage Labour Markets, and Minimum Wages – An Empirical Analysis
Monopsonistic competition, low-wage labour markets, and minimum wages: An empirical analysis
Monopsonistic Competition, Low-Wage Labour Markets, and Minimum Wages: An Empirical Analysis
Swedish Multinationals and Competition from High- and Low-Wage Locations
Venezuela: Oil revenues’ inflationary pressure
Low-wage import competition and populist backlash: The case of Italy
Low-wage work in Germany
Trade with low-wage countries and wage inequality
Low-wage competition: Pains from trade for medium-wage countries
Low-wage employment
Low-wage employment
Firm Innovation under Import Competition from Low-Wage Countries
Monopsonistic Competition, Low-Wage Labour Markets, and Minimum Wages – An Empirical Analysis
Monopsonistic competition, low-wage labour markets, and minimum wages: An empirical analysis
Monopsonistic Competition, Low-Wage Labour Markets, and Minimum Wages: An Empirical Analysis
Swedish Multinationals and Competition from High- and Low-Wage Locations
Venezuela: Oil revenues’ inflationary pressure
Low-wage import competition and populist backlash: The case of Italy
Low-wage work in Germany
Trade with low-wage countries and wage inequality
Low-wage competition: Pains from trade for medium-wage countries
Low-wage employment
Low-wage employment
Firm Innovation under Import Competition from Low-Wage Countries
Monopsonistic Competition, Low-Wage Labour Markets, and Minimum Wages – An Empirical Analysis
Monopsonistic competition, low-wage labour markets, and minimum wages: An empirical analysis
Monopsonistic Competition, Low-Wage Labour Markets, and Minimum Wages: An Empirical Analysis
Swedish Multinationals and Competition from High- and Low-Wage Locations
Venezuela: Oil revenues’ inflationary pressure
Low-wage import competition and populist backlash: The case of Italy
Low-wage work in Germany